Even though all eyes are on the upcoming iPhone 7, rumors of the 2017 iPhone 8 are already all over the web. A lot has been said about the tough year Apple is expected to have this 2016, especially now that Samsung is doing great in the market with its Galaxy S7 and S7 Edge handsets.
Samsung has been leading the sales’ charts for the second quarter in a row, but probably because the Galaxy S7 and S7 Edge are newer than the iPhone 6S and 6S Plus. This could change with the release of the iPhone 7 and iPhone 7 Plus, but then again the Galaxy Note 7 is another huge obstacle in Apple’s way. As you may notice, Apple and Samsung are fierce rivals in the smartphone industry, but this doesn’t mean these two can’t sit on the same table. In fact, the A9 chipsets used on the iPhone 6S and 6S Plus were made by Samsung and TSMC.
The result of this shared production duties meant that at some point debates arose with regards to which of the two is a better performer than the other. To ensure that such issues are not repeated, the American tech giant has decided to dump Samsung and instead stick with TSMC as far as the production of the A10 chipsets is concerned. These are the chipsets that Apple is to use on the iPhone 7 and iPhone 7 Plus (Pro).
With Samsung’s profits not just coming from its huge sale of smartphones but also chipsets, the loss of the A10 business will dent a huge blow in the South Korean company’s 2016 revenues and profits for that matter. Even though the iPhone 7 is seen to be less impressive with its minimal design changes, it will still attract a significant number of buyers across the globe. While this will be a plus for Apple and TSMC, the books at Samsung will be showing negative figures.
Things are even getting worse for Samsung as the latest reports claim that Apple will keep going for TSMC as far as its iPhone 8 chipsets are concerned. Dubbed the A11, the entire production duties of this SoC will be left to the Taiwanese company, which is another bigger blow for Samsung. Given that the iPhone 8 is where Apple has directed its entire redesign attention, there will probably be a larger demand for this handset than the iPhone 7 or even the iPhone 6S. If this materializes, it will spell doom for Samsung’s chipset business.
Apparently, the launch of the iPhone 8 in 2017 will also see it stay around for probably another 3 years. With this move, Apple has completely choked Samsung’s revenue stream.
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